A Project Manager Is Using the Payback Method to Make

Multiple Choice

A project manager is using the payback method to make the final decision on which project to undertake.The company has a 10% required rate of return and expects a 4% rate of inflation for the following five years.What is the discounted payback of a project that has cash flows as shown in the table?

A) 3.5 years
B) 5.3 years
C) 4.6 years
D) 4.2 years